Economics
China Won't Use Yuan as Tool to Deal With Trade War, Yi Says
- Governor says China won’t engage in ‘competitive devaluation’
- Domestic slowdown, trade tensions to continue to pressure yuan
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China won’t use its currency as a tool to deal with trade conflicts, central bank Governor Yi Gang said, as a tariff war between the U.S. and the world’s No. 2 economy intensifies.
“China will continue to let the market play a decisive role in the formation of the RMB exchange rate,” Yi said in a statement to the International Monetary and Financial Committee, which was posted on the IMF’s website on Saturday. “We will not engage in competitive devaluation, and will not use the exchange rate as a tool to deal with trade frictions.”